We just put it in Airbnb April 1 and have had 3 bookings and they have all went well but they have all been on the weekend.  

Put ~$35k into it and fully gut-rehabbed it (mostly ourselves) to make it an awesome home at ~$500/month mortgage.

You don't want tenants putting utilities in their name for a 13 week stay.

"Ted Lanzaro: is a CPA, author and speaker specializing in taxation for the real estate industry.No, there is a three part test - do you have basis (probably yes because you put &’s in), can you qualify as a RE pro (yes), did you materially participate in the activity of the entity (no - this is where you fail the tests).

My state laws do not put a limit on increase amount or frequency of increases. 

I’v been through alot in my life, in fact where I am at today already proves that we can do anything we put our minds to!

I have some unused space that i can extend the bathroom area or add a laundry area, but I have already been put a ton of work (and money) into the main area of the house and don't want to do any upgrades to the ADU that aren't critical in maximizing rental capabilities.

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

Dave Ramsey would not be a fan of this, as he also would not be a fan of putting 0% down on a house, but if you don't mind leverage, this is a great strategy.

If you can buy at an under-market price and add value, you would be able to get most or all of you money you put in by doing a lower LTV cash out refinance.